Diabetes America, Inc. (Diabetes) (debtor) was incorporated in Delaware but located in Texas. Diabetes filed for reorganization under chapter 11 of the bankruptcy code. Prior to the bankruptcy petition, Frank Basile (creditor) had lent Diabetes $150,000 and held a security interest in Diabetes’s assets. Basile filed a financing statement to perfect the security interest in Texas. However, Basile did not file a financing statement in Delaware. When Diabetes filed for bankruptcy, Basile filed a secured proof of claim with the bankruptcy court. The bankruptcy trustee moved for summary judgment as to Basile’s claim, arguing that Delaware commercial law applied to the perfection of security interests in Diabetes’s assets, and that Basile’s security interest was unperfected in Delaware.